SpiceJet shares end nearly 8 percent higher on Tigerair deal

Mumbai: Shares of SpiceJet on Monday settled nearly 8 percent higher after the company announced a three-year interline agreement with Singapore's largest budget airline Tigerair to increase connectivity between their carriers.

SpiceJet ended at Rs 16.90, up 7.64 percent from its previous close on the BSE stock exchange.

Earlier in the day, the stock had surged by 12.1 percent to intra-day high of Rs 17.60.

In terms of volume, 84.26 lakh shares of the company changed hands on the BSE during the day.

SpiceJet is the first Indian low-fare airline to establish such an arrangement with a foreign airline.

This partnership will result in a major boost for tourism and business travel between the two countries, says a press release issued by India's no-frill airline.

SpiceJet Chief Operating Officer Sanjiv Kapoor said, "We are glad to announce the interline partnership that brings two leading low-fare Asian carriers together. This is a historic moment for SpiceJet and Tigerair. This partnership will hugely benefit travellers from India and Singapore and represents one of the building blocks of the emerging new SpiceJet.

Starting from January 6, 2014, customers travelling on SpiceJet's domestic network from 14 Indian cities can have seamless connection through Hyderabad's Rajiv Gandhi International Airport onto Tigerair's Singapore-bound flights, the company said.

Similarly starting January 12, 2014, Tigerair customers from Singapore will also enjoy easy access to SpiceJet's wide domestic network, making their holiday and business travel more seamless, it said.